Abstract A premature failure that occurs before the expected load cycle during the torsional fatigue test of a propeller shaft assembly prototype is studied. In these test crack mainly originated repetitively from one of the components, namely Flange yoke at same region. To determine the root reason of the failure a detail CAD model of Flange yoke was developed and analyzed by Finite Element Method. Fatigue crack initiation and location were determined and compared with test data. We found good correlation between FEM results with testing failure results. Design improvements solutions are proposed to increase the fatigue life. Mechanical properties of the Flange yoke were determined by the tensile strength test. Using these input datas stress and strain analysis was performed in ANSYS software. Keywords: Finite Element Analysis, Stress Concentration, Structural Analysis